Credit Card Applications: Points to Keep in Mind before Submitting One

A Credit Article Contributed by Girish Katyal

Things to Check before Filling an Application for a Credit Card

You may be getting offers from various credit card companies to complete their application for a credit card or that you have been already issued a pre-approved credit card. But before you select a credit card, ensure to check for the following elements:

Credit Card Terms: A credit card is another form of loan and its terms and conditions influence your cost. So it is good to compare terms and fees before selecting one.

Annual Percentage Rate(APR): The APR is used to evaluate of the cost of credit and is often put as a yearly rate. It should be clearly mentioned and expressed before you fill an application for a credit card. There is an Introductory APR which is usually offered to new customers or applied to balance transfer from one credit card to another. Then there is Variable APR which changes as it is linked to the performance of various economic indicators called indexes.

It should be clearly mentioned on the application form that the rate may change and that how it is calculated and charged. Then there is a Fixed APR in which interest rate is fixed but can be changed anytime by issuing a 15 days prior notice to the card holder.

Grace Period: Also called free period during which you can pay your balance to avoid any financial charges and is usually about 25 days. The card issuer must send the bill 14 days before the due date so that you have enough time to make your payment.

Annual Fees: You should always compare the annual fees charged by various card issuer and go for the one which is suitable for you.

Transaction Fees and Other Charges: Charges for cash advances, late payments or exceeding credit limits should also be considered before submitting an application for a credit card

Credit Card Applications and Their Effect on Your Credit Report

Now a day's use of credit cards is very common and the numbers of credit card offers you get through the Internet and in the mail are increasing day by day. Applying for various credit cards directly affect the score on your credit report. As every time someone checks your credit report, it generates an inquiry. Getting a number of credit cards at a same time can give you a low credit score as credit bureaus always takes note of how many credit cards you have owned recently.

Credit report also contains the list of your most recent inquiries and also that your credit card application is accepted or rejected. Whenever you are submitting an application for a credit card it creates an inquiry in your credit report. And too many of inquiries in your credit report will always give you a low credit score.

Check If It Is Safe to Fill a Credit Card Application Online

Though all the online credit card issuer tale necessary steps to ensure the safety of their customers, it is always good for you to know about their security and privacy policy before filling an application for a credit card online. Your personal information like your address, social security number, credit card details or other such things should not be accessible to others over the Internet.

You should check if the data you enter is encrypted using the latest technology and is stored in a different place behind a firewall. You should also check for programs offered by various credit card issuers to safeguard your information.